Twenty One Capital Launches With 42,000 Bitcoin to Challenge Strategy's Market Position

TLDR

Table of Contents

Strike founder Jack Mallers will lead Twenty One Capital, a new Bitcoin-focused company launching with 42,000 BTC ($3.9B)
The firm will go public via SPAC merger with Cantor Equity Partners under ticker XXI on Nasdaq
Major backers include Tether (23,950 BTC), SoftBank (10,500 BTC), and Bitfinex (7,000 BTC)
Twenty One Capital directly positions itself as a competitor to Michael Saylor’s Strategy (formerly MicroStrategy)
Beyond Bitcoin holdings, the company plans to develop Bitcoin debt/equity products, lending services, and educational resources

A new Bitcoin treasury company called Twenty One Capital is making waves in the crypto space, launching with an eye-catching 42,000 Bitcoin (worth approximately $3.9 billion) and aiming to challenge Michael Saylor’s Strategy as the go-to vehicle for Bitcoin exposure. The firm will be led by Jack Mallers, known for founding the Bitcoin payments company Strike.

Twenty One Capital will go public through a merger with blank-check company Cantor Equity Partners. Once finalized, it will trade on the Nasdaq under the ticker XXI. The firm is working to raise $585 million through a combination of convertible bonds and equity financing.

This new venture has attracted major industry players as backers. Tether is contributing approximately 23,950 BTC, SoftBank is putting in 10,500 BTC, and Bitfinex is adding 7,000 BTC. These Bitcoin holdings will be converted to equity at $10 per share according to the April 23 announcement.

Directly Challenging Strategy’s Market Position

Twenty One Capital isn’t subtle about its intentions. In investor materials filed with the SEC, the company explicitly frames itself as a “superior vehicle for investors seeking capital-efficient Bitcoin exposure” compared to Strategy.

The company argues that Strategy’s current massive Bitcoin holdings (534,741 BTC) limit its ability to create additional shareholder value. According to Twenty One Capital, Strategy would need increasingly larger Bitcoin purchases to meaningfully increase its Bitcoin Per Share (BPS), making future capital deployments less impactful on a per-share basis.

“Our mission is simple: to become the most successful company in Bitcoin, the most valuable financial opportunity of our time,” said Mallers in the announcement.
“We’re not here to beat the market, we’re here to build a new one. A public stock, built by Bitcoiners, for Bitcoiners.”

The company positions itself as a more pure Bitcoin play for investors. Twenty One Capital promises to offer Bitcoin-native operations and greater flexibility in making strategic capital raises compared to its established competitor.

Expanding Beyond Bitcoin Holdings

While Bitcoin accumulation forms the core strategy, Twenty One Capital has outlined plans for a more comprehensive approach to the market. The firm intends to develop several Bitcoin-focused products and services, including debt and equity products, advisory services, lending platforms, and educational resources.

“Twenty One’s mission will be to accelerate Bitcoin adoption and Bitcoin literacy at both institutional and retail levels,” the company stated. They also plan to collaborate with industry partners to host Bitcoin conferences, furthering their educational mission.

This multi-faceted approach suggests Twenty One Capital aims to evolve beyond simple Bitcoin accumulation. The company is looking to create a broader platform for Bitcoin-focused innovation, including new capital market instruments and pro-Bitcoin content for shareholders.

News of the venture sent Cantor Equity Partners shares soaring by 54.2% to $16.50 on April 23. The stock climbed an additional 25.1% in after-hours trading, according to Google Finance data. Once the $585 million agreement is completed, CEP will be converted to the XXI ticker.

Strategic Backing And Market Position

The ownership structure gives Tether and Bitfinex majority control of Twenty One Capital, while SoftBank will maintain a minority stake. This move strengthens Tether’s relationship with Cantor, which already manages the US Treasury reserves backing Tether’s USDT stablecoin. Cantor also holds a 5% ownership stake in the stablecoin issuer.

Paolo Ardoino, Tether’s CEO, expressed strong support for the new venture: “Bitcoin is one of the only truly decentralized, immutable, and censorship-resistant asset, and its role as the foundation of a new financial system is inevitable. With Jack at the helm, we are proud to support this effort to further Bitcoin’s adoption and reinforce its role as the ultimate store of value.”

With its initial 42,000 Bitcoin holdings, Twenty One Capital would immediately become the third-largest corporate Bitcoin holder globally. Only Strategy and Bitcoin mining company MARA Holdings (with 47,600 BTC) would rank higher according to data from BitcoinTreasuries.NET.

The firm has disclosed that Tether has committed to acquiring Bitcoin equivalent to the full PIPE raise before closing, showing strong confidence in the venture’s future. By combining substantial Bitcoin holdings with plans for financial products and Bitcoin-focused media, Twenty One Capital is positioning itself as a comprehensive platform for Bitcoin investment and education.

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